VOLVO CONTROLS MORE THAN 90% IN KOMMERSIELLA FORDON EUROPA AB

Volvo controls more than 90 percent of capital and votes in Kommersiella
Fordon Europa AB. The acceptance period has been extended through August
8, 2003

The processing of acceptances submitted in AB Volvo's offer indicates
that 12,307,868 shares in Kommersiella Fordon Europa AB ("KFAB"),
representing 47.89 percent of the shares and votes in KFAB, have been
tendered in the offer. Combined with the KFAB shares received by Volvo
as dividend, Volvos total share in KFAB upon completion of the offer
will be 23,397,370 KFAB shares, representing 91.04 percent of the shares
and votes in KFAB.

Volvo has established that all conditions for the offer have been
fulfilled, with the exception that it has not yet been confirmed that
the shares in KFAB have been registered in the VP-accounts of the
shareholders of Bilia. Such registration is expected to take place on 11
July 2003 whereby Volvo will consider this condition. Provided that also
this condition has been fulfilled, settlement is expected to be
effective on 14 July, 2003 whereupon AB Volvo will request compulsory
acquisition of the remaining shares in KFAB.

The acceptance period is extended through August 8, 2003 for those
shareholders who have not yet tendered their shares. Settlement for
shareholders who submit their shares during the extended acceptance
period is expected to be August 15, 2003.

July 7, 2003

For further information, please contact Marten Wikforss +46 31 66 11 27

The Volvo Group is one of the world's leading manufacturers of trucks,
buses and construction equipment, drive systems for marine and
industrial applications, aerospace components and services. The Group
also provides complete solutions for financing and service. The Volvo
Group, which employs about 71,000 people, has production facilities in
25 countries and sells their products in more than 185 markets. Annual
sales of the Volvo Group amount to 18 billion euro. The Volvo Group is a
publicly-held company headquarterd in Goteborg, Sweden. Volvo shares are
listed on the stock exchanges in Stockholm, London, Brussels and
Frankfurt and on NASDAQ in the US.